Thursday, December 7, 2023

Smooth sailing as GDT rises yet again

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Fourth consecutive hike thanks to gains almost across the board.
GDT has been working on the event in order to offer alternate weeks between GDT events in an effort to provide the market with interim price discovery for core commodities.
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Dairy prices lifted for a fourth time running at the October 17 Global Dairy Trade auction, with the index rising 4.8% spurred by gains across every key product.

The 4.2% rise in whole milk powder means it has grown 20% in value over the past two months.

“Fundamentally, there isn’t anything shocking or noticeable for WMP at this auction; there is a slight forward lifting curve with steady increases through contract periods and a slight premium for instant,” NZX dairy analyst Alex Winning says in a note.

“From a regional perspective, as North Asia purchased less, other regions purchased more and again, nothing wildly surprising except for volume sold into Europe.”

Skim milk powder rose 4.3% while anhydrous milkfat rose 7.1% on lower volumes.

Butter rose 2.9% and cheddar was relatively flat, gaining just 0.2$.

“Overall, while the sea was green, this was one of the least interesting events of recent months, no shocking movements, no shocking regional purchases but hey, maybe that consistency is what the industry needs.”

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